“Smart Beta represents one of the fastest growing sectors within the ETF market,” said DWA Tom Dorsey in the statement. “This deal will allow us to grow significantly, while continuing to create products and strategies that meet the needs of our clients.”
Well-known ETFs tracking Dorsey Wright indexes, which are typically rooted in relative strength strategies, include the $311.6 million PowerShares DWA Emerging Markets Momentum Portfolio (NYSEArca: PIE), the $1.6 billion Powershares DWA Momentum Portfolio (NYSEArca: PDP) and the $287.4 milion PowerShares DWA SmallCap Momentum Portfolio (NYSEArca: DWAS).
Last year, Invesco’s (NYSE: IVZ) PowerShares unit, the fourth-largest U.S. ETF provider, shifted 10 of its ETFs, including nine sector funds, to Doresy Wright indexes. [Index Swap Lifts This ETF]
DWA is also the index provider for the First Trust Dorsey Wright Focus 5 ETF (NasdaqGM: FV). With over $1.3 billion in assets, FV was the top asset gatherer among the more than 200 ETFs that debuted in 2014.
ETF Trends editorial team contributed to this post.